Problem 9-5A Calculating depreciation—partial periods LO2, 3
West Coast Tours runs boat tours along the west coast of BritishColumbia. On March 5, 2020, it purchased, with cash, a cruisingboat for $936,000, having a useful life of 10 years or 13,800hours, with a residual value of $246,000. The company’s year-end isDecember 31.
Required:
Calculate depreciation expense for the fiscal years 2020, 2021, and2022 by completing a schedule. (Note: Depreciation is calculated tothe nearest month. Assume actual hours of service were: 2020, 900;2021, 1,960; 2022, 1,715.)
Depreciation MethodYearStraight-LineDouble-DecliningBalanceUnits-of-Production202020212022
